Isn’t it a better idea to prefer your investment for business purpose rather than getting a loan from the bank or mortgaging anything?

Well, it is possible. Pension backed funding for your own business is one of the preferred alternatives to fuel up the UK’s financial investment need.  It is considered the lowest cost and lowest risk option compared to all other third-party lenders. One can take a loan from his/her pension funds for the business purpose which would incur some commercial interest rate over it, which is effectively paid into its pension fund. In other words, it is an alternative form of loan where the debt is secured by the one’s retirement fund savings instead of any bond. This form of funding doesn’t require any personal guarantee, unlike any traditional bank funding.

It may sound not very easy, but it is one of the most growing income sources for most business types and ideal for growing firms that are over 12 months old. Many businesses, particularly accountants, service-based firms, and manufacturing, have taken advantage of it, as a standalone funding option and the combination of other forms of finance. The borrowers who have good pension funds are considered creditworthy.

Any director of a limited company, sole proprietor, or partnership firm with a personal pension scheme above £20,000 can avail of this facility. However, to help it, you need to trade via a limited company.

Our team at AWS Mortgages are well trained in facilitating pension backed funding for those who want their business to be flourished through this source of fund. They come up with the best advice matching your requirements with the best suitable deals available.